Spotify has 70,000 US paid subscribers, claims Billboard editor

The Spotify music streaming service launched in the US just over a week ago, but it looks like the business has already generated a large number of subscribers to its paid service. The blog site of Billboard editor Bill Werde has posted up word that according to his information, Spotify has already signed up 70,000 US users for its monthly service. Werde states that these numbers come from three unnamed but "distinct label/publisher execs". Officially, Spotify reps would not comment on Werde's numbers, saying only that the response to Spotify's US launch "has exceeded our expectations in both the response to invitations for the free service as well as subscriptions."

The large number of paid subscribers at this early stage is significant because other, and far more established music subscription services, in the US have so far not been able to generate huge subscriber numbers even after years of being in operations. For example, the blog site states that Rhapsody currently has about 800,000 subscribers. In Europe, Spotify, which launched in that territory in 2008, now has about 15 million users of which 1 million are paid subscribers.

Spotify's US launch lets people listen to its library of music free of charge and with unlimited time for six months on a PC or Mac with advertisements. It also offers $5 and $10 monthly subscription plans that do away with the ads. The $10 plan also allows users to stream music from smartphones like the iPhone and Android-based phones.

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18 Comments

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Makes me wonder how many Zune Pass subscribers there are. Of course, MS doesn't want to release numbers because they're probably not so great, though I might probably guess aruond 400K-500K.

I have a Zune HD, so of course I'll likely stick to the Zune Pass whenever I have money (not really a music guy anyhow). Hopefully Spotify can really amp up the pressure for Microsoft to deliver better services and social features (which they based themselves on the very beginning!).

I have a premium membership ($9.99 / month). So far I am loving it. Better than Zune (since it's on my Android devices). Better Social features than Zune.

Microsoft should have opened up the Zune Market and created the app for iOS and Android. Them trying to keep it exclusive to WP7 was jsut plain stupid. I really hope Spotify succeeds making the Zune service obsolete. One less carrot for Microsoft to dangle for WP7.

UndergroundWire said,

Microsoft should have opened up the Zune Market and created the app for iOS and Android. Them trying to keep it exclusive to WP7 was jsut plain stupid. I really hope Spotify succeeds making the Zune service obsolete. One less carrot for Microsoft to dangle for WP7.

You want Zune Pass to be obsolete just so WP7 has less marketable features? If you hadn't noticed, competition generally pushes companies to makes their services or products better so people will vote who will succeed by their wallets. Companies can change, and if Spotify had complete control, do you think they'd make it easier for any potential competition to have an easy time beating Spotify? I don't think so.

Of course making Zune exclusive to Microsoft's stuff is a strategic advantage. The subscription is good for what you get, with the only catch being you use it on Microsoft's supported devices. Though you can of course access your Zune Pass via any web browser. This also makes Microsoft more stronger in trying to make sure it's basic platforms themselves are appealing to the masses.

Quikboy said,

You want Zune Pass to be obsolete just so WP7 has less marketable features? If you hadn't noticed, competition generally pushes companies to makes their services or products better so people will vote who will succeed by their wallets. Companies can change, and if Spotify had complete control, do you think they'd make it easier for any potential competition to have an easy time beating Spotify? I don't think so.

Of course making Zune exclusive to Microsoft's stuff is a strategic advantage. The subscription is good for what you get, with the only catch being you use it on Microsoft's supported devices. Though you can of course access your Zune Pass via any web browser. This also makes Microsoft more stronger in trying to make sure it's basic platforms themselves are appealing to the masses.

it would be strategic advantage if WP7 actually had any success. which is not the case. those 70k new subscriber could have gone to zune pass if microsoft actually opened up the thing. as they mostly offer the same stuff as spotify for 10 bucks.
you don't see google holding back the google+ app on other mobile platforms just because they want to have the "strategic advantage" with android. just like a social network will only succeed if people can access it anywhere (there are facebook apps for virtually every possible platform, even if some are 3rd party), a SUBSCRIPTION music service will only succeed people have the freedom to listen to the music WHEREVER they want. zune doesnt allow this, though I will not deny that for those who have wp7 and xbox 360, it's a great choice.

Quikboy said,

You want Zune Pass to be obsolete just so WP7 has less marketable features? If you hadn't noticed, competition generally pushes companies to makes their services or products better so people will vote who will succeed by their wallets. Companies can change, and if Spotify had complete control, do you think they'd make it easier for any potential competition to have an easy time beating Spotify? I don't think so.

Of course making Zune exclusive to Microsoft's stuff is a strategic advantage. The subscription is good for what you get, with the only catch being you use it on Microsoft's supported devices. Though you can of course access your Zune Pass via any web browser. This also makes Microsoft more stronger in trying to make sure it's basic platforms themselves are appealing to the masses.

Sorry, I want something accessible from my smartphone. The Zune service is great. However, my Zune will crap out soon and I as sure as hell will not be buying an outdated Zune hardware. And I as sure as hell will not buy a WP7 phone.

With Spotify, I've been sharing my playlist with my friends and they were doing the same to me. Also, people like Trent Reznor and Mariqueen are sharing there playlists. That's all a plus to me. It's more social than the Zune.

Spotify is great, but can it last? Who's to say it won't go belly up like another streaming service like imeem? That was pretty good a few years ago before going under.

alexalex said,
Only 70,000 ? Isn't that a fail ?

They released the service just a week ago, that's 10 000 paid subscribers every day. Not a fail in my book.

alexalex said,
Only 70,000 ? Isn't that a fail ?

wait a company that turns over $4.2 million a year is classed as a fail in your world?
ok theres the music people to pay off and everything but as a Gross Profit, its still not that bad!

(5 *70,000)*12 if you was wondering how i got to that number.

alexalex said,
Only 70,000 ? Isn't that a fail ?

It can always be better, but that's at least $350,000 from US only a month, plus whatever they're getting from advertisers. It'll improve (at least it should) once Spotify lets go of the invite only and has more awareness.

We also have to consider that they're entering against the likes of iTunes, Zune and Grooveshark, so I think they're doing pretty well considering.

First_mistake said,

wait a company that turns over $4.2 million a year is classed as a fail in your world?
ok theres the music people to pay off and everything but as a Gross Profit, its still not that bad! :-)

(5 *70,000)*12 if you was wondering how i got to that number.

420 days in year, what planet are you living? Also, your assumption that they are going to keep up with that 10,000 subscriber a day over a year is not realistic.

trollonknoll said,

420 days in year, what planet are you living? Also, your assumption that they are going to keep up with that 10,000 subscriber a day over a year is not realistic.

12 months, you pay $5 a month, im not sure about you but do you know how many months are in a year?,

that number was based on if they never get anyone else to join? not based at current growth /peace